LYC - Lynas Rare Earths

[PinguPingu]

If I've sold my shares after the record date (29th March I believe) for the SPP (I did around this last high of 2.60 ) but I'm looking to rebuy, can I still partake in this offering?

 

[nioka]

If I've sold my shares after the record date (29th March I believe) for the SPP (I did around this last high of 2.60 ) but I'm looking to rebuy, can I still partake in this offering?

You should be able to participate. You should get an offer in the mail next week.

 

[PinguPingu]

Awesome, thanks for the quick reply, Nioka.

 

[TheAbyss]

Not sure why you sold any shares in LYC though unless you needed the cash. Very tempting to sell too early on winners. Lock in some profits and buy on dips is good also of course.

LYC just runs hard then fills gaps regularly so an enjoyable stock atm

 

[PinguPingu]

Lock in some profits and buy on dips is good also of course.

Yeah, that was what I was attempting to do. Bought in at 1.93, sold at 2.60, but now looking to buy back in via SPP (which I believe is lower of is 2.07 or 2.5% discount of price in pricing peroid). Not really a dip per se, but a brokerage free way to get what I believe will be a good price in again.

 

[TheAbyss]

Yeah, that was what I was attempting to do. Bought in at 1.93, sold at 2.60, but now looking to buy back in via SPP (which I believe is lower of is 2.07 or 2.5% discount of price in pricing peroid). Not really a dip per se, but a brokerage free way to get what I believe will be a good price in again.

problem with that theory is getting full $5k allocation which we wont

 

[PinguPingu]

Yeah, I should have guessed that it's likely to be over subscribed.... however I inititially only had 3k worth of shares to begin with, so I'd still be quite happy with 60% of the allocation. Any estimates on probable scale back?

 

[Logique]

You should be able to participate. You should get an offer in the mail next week.

Mine came in the mail today.

 

[fmoraes]

Mine came in the mail today.

Is this only valid for Australians or would I be able to participate here in the US?

 

[GumbyLearner]

Is this only valid for Australians or would I be able to participate here in the US?

No you won't be able to according to clause 12.3 (a) of the offer.

"The SPP shares may not be taken up by persons in the United States or by persons acting on behalf of the benefit of a person in the United States."

There is always Molycorp within the US. FWIW

 

[Logique]

Correct as Gumby says.

'The SPP Shares have not been and will not be registered under the US Securities Act or the securities laws of any state or other jurisdiction of the United States'

 

[nioka]

There is plenty of work underway at the moment to try and stop the deal to sell the Crown lease to FRG at mates rates. The apparent conflict of interest and the enormous benefit that the CEO of Lynas has in gettin the deal through is causing concern. A vote no to the deal is being organised by many shareholders. Anyone not happy with the deal should forward their proxy no vote to the Australian Shareholders Association.
Contact details;
share@asa.asn.au
ph 1300368448
fax 0294116663
Level 7 North Tower
1-5 Railway St
Chatswood NSW 2067.

Act as soon as you receive your meeting notice and proxy form unless you can attend the meeting in person.

This mates rates deal MUST be stopped or a resource previously touted by Lynas as worth $1 billion+ will be sold to Forge for a little over $20M and our CEO who is also the CEO of Forge will receive a bonus of Forge shares (just for introducing the deal) that will make him the majority shareholder in FRG.

Everyones vote will be important.

Hopefully ASIC will put a stop to this deal going ahead as I know it is being investigated but you cant count on that happening in time to stop the rot.

 

[nioka]

News that Alkane are negotiating with Lynas for processing their Rare earths.

From http://news.reportlinker.com/n09384382/Lynas-and-Alkane-work-on-supply-deals.html#ixzz1JBxPtIzc


"Western Australian mining company Lynas Corporation is conducting negotiations with Alkane Resources about a possible deal involving the supply of heavy rare earths. The talks could lead to Lynas processing heavy rare earths concentrates produced by Alkane at its Zirconia project in Dubbo, New South Wales. Alkane MD Ian Chalmers said Alkane is also conducting talks with other potential partners, including US-based Molycorp Minerals and Japanese and European companies"

 

[clowboy]

Can someone please clarify, it has the 29th of april as the pricing period but I am assuming that this means from opening date to the 29th and not just the 29th.

cheers

 

[Logique]

Good question. It reads to me as on the day 29th April. Enquiries line is Registries Ltd on 1300 737 760.

I'm not too worried about it, since the Issue Price is the lower of $2.07 and the average price in the Pricing Period less 2.5%. That is, it will very probably be $2.07 regardless, given the shares are at about $2.60 now, if under a little pressure on a down market day.

 

[dazdingo]

Hey, i got my pack in the mail today to vote 'FOR' or 'AGAINST' the Forge deal. What's going to be the best scenario for me as a shareholder to vote?

 

[nioka]

Hey, i got my pack in the mail today to vote 'FOR' or 'AGAINST' the Forge deal. What's going to be the best scenario for me as a shareholder to vote?

You can contact the Australian Shareholders ASSN and ask them to accept your proxy. It is important that we get as many small shareholders as possible to vote no. This deal will be hard to stop unless ASIC see fit to intervene. There is good cause for them to do this because of the obvious conflict of interest in Curtis putting this deal forward. The deal is at mates rates with the price of a little over $20M for a resourse that was previously touted as being worth more than a billion dollars. Curtis is also getting around the 20 million from forge in shares just for introducing/finding the project.

You can also get advice or help by contacting the operators of a web site assisting "no votes" at lynascorpnovote@gmail.com

I urge everyone to vote no as this deal stinks and must not go ahead.

 

[GumbyLearner]

Probably less than Forge, Lynas has the capacity on the sit as of now and will not be working full time at Mt Weld to supply the Malaysian plant with concentrate.. If the CEO of Lynas (and Forge) thinks it is a good proposition for Forge to do it then he would know. Therefore he would also know it would be a better proposition for LYC to do it as well. It would be easier for LYC to finance the development than it would be for a shell company with dubious reputation. Unless of course there are already plans at foot to sell it off to Chinese mates.

I appreciate your input nioka. It really is amazing that the company is attempting to sell Crown for such a price. I wonder if NCM would consider selling their O'Çallaghans tungsten deposit next door to Telfer for 2% of it's JORC.

 

[PinguPingu]

If using the ASSN as a proxy, would you just need to write them in on your voting form or is there more you would need to do?

 

[Logique]

There is plenty of work underway at the moment to try and stop the deal to sell the Crown lease to FRG at mates rates..

Sorry but I'm not completely convinced it's as bad as you say. Sure (just the) cash component at $20Mill seems small, but if so, why aren't competing bids coming in?

This is a non-core asset, containing non-core materials, in tantalum, niobium and phosphates, which Lynas isn't targeting, and even if it was, they say would cost $1Billion to develop. How Forge, on the back of a $30Mill capital raising, are going to manage it -who knows.

But, in the absence of a better offer for the Crown polymetallic deposit and Swan phosphate deposit, there is no opportunity cost to Lynas here.

Read the independent experts report by Grant Samuel before jumping to conclusions. There are safeguards, such as the rights to independently prospect; retained rights to the REEs; downstream royalties; rare earth feedstock supply for the Malaysian LAMP; also the right to cancel if Forge don't proceed within 5 years.

Would this deal have happened without the links to Forge of LYC Directors Nicholas Curtis and Jacob Klein? Probably not. Will Mr Curtis benefit personally? Yes in a big way. Does this make it a bad deal for Lynas? Can't see it in the near to medium term, the whole thing has been negotiated at arms length.

It's all a bit tawdry, yes, and a flea speck in Lynas' overall budget, but that's not necessarily a reason to oppose it.